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A spatial hedonic analysis of the housing market around a large, failing desert lake: the case of the Salton Sea in California

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  • Amrita Singh
  • Jean-Daniel Saphores
  • Tim Bruckner

Abstract

Many lakes around the world exhibit acute environmental stress due to water transfers, persistent droughts, and polluted runoff. In addition, falling water levels worsen air quality by exposing desiccated shores. To our knowledge, however, no published hedonic study has analyzed the costs of deteriorating water quality jointly with the air quality impacts of falling water levels for a large inland water body. We conduct such an analysis for the Salton Sea, the largest lake in California. Our spatial autoregressive models estimated on single-family properties located within 10 miles (16.1 km) of the Sea show that a 1 km reduction in distance to the Sea results in a $595 decrease in the price of a single-family residence. In addition, a 1% increase in annual particulate matter concentration reduces the value of the average family residence by $1,140. These results highlight the vulnerability of poor rural communities to deteriorating environmental conditions.

Suggested Citation

  • Amrita Singh & Jean-Daniel Saphores & Tim Bruckner, 2018. "A spatial hedonic analysis of the housing market around a large, failing desert lake: the case of the Salton Sea in California," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(14), pages 2549-2569, December.
    • Handle: RePEc:taf:jenpmg:v:61:y:2018:i:14:p:2549-2569
    DOI: 10.1080/09640568.2017.1405799
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    Cited by:

    1. Ziwei Hu & Hotaka Kobori & Brent Swallow & Feng Qiu, 2022. "Willingness to pay for multiple dimensions of green open space: Applying a spatial hedonic approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(3), pages 179-201, September.
    2. Andrew Adewale Alola, 2021. "Evidence of speculative bubbles and regime switch in real estate market and crude oil price: Insight from Saudi Arabia," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3473-3483, July.
    3. Hu, Ziwei & Swallow, Brent & Qiu, Feng, 2021. "Measuring the Amenity Value of Urban Open Space Using a Spatial Hedonic Approach: The Case of Edmonton, Canada," 2021 Conference, August 17-31, 2021, Virtual 315287, International Association of Agricultural Economists.

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